The Public Provident Fund (PPF) is a popular investment for securing one’s future and planning for retirement.
Recently, the rules for PPF accounts have been updated.
The new guidelines, which will take effect on October 1, 2024,
include changes to rules about opening multiple PPF accounts for minors and extending PPF accounts for NRIs through post offices under the National Small Savings Scheme.
These changes affect minors’ accounts, extensions for NRIs, and other aspects of PPF management.
Here’s a summary of the new guidelines:
Key Rule Changes
Interest Rates for Minors
According to the new rules, minors with irregular PPF accounts will receive interest at the same rate as a Post Office Savings Account until they turn 18.
Once they turn 18, they will start receiving the full PPF interest rate. The account’s maturity period will be calculated from the minor’s 18th birthday.
New Rules Effective from October 1, 2024
On August 21, 2024, the Department of Economic Affairs issued a circular announcing updates to three key PPF rules.
These changes will take effect from October 1, 2024.
The Ministry of Finance now has the authority to regularize irregular small savings accounts.
Any issues related to these accounts should be directed to the Ministry of Finance.
Interest Policy for NRI Accounts
For NRIs with PPF accounts, interest will be paid at the Post Office Savings Account rate until September 30.
After this date, no interest will be paid on these accounts.
Additionally, if a person has more than one PPF account, only the primary account will earn interest,
while money from secondary accounts will be transferred to the primary account.
Additional Information
All issues related to irregular small savings accounts should be directed to the Ministry of Finance, which has the authority to regularize these accounts.
